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GM Korea Bupyeong plant in Bupyeong-gu, Incheon. Photos = Yonhap News
There are fears that GM Korea’s continuing “withdrawal theory” may become a reality. This is because it is difficult to turn into a surplus this year due to the consequences of the new coronavirus infection (Corona 19), and the union has declared an all-out war and even the labor management conflict has become serious.
According to the automotive industry on the 17th, the GM Korea Branch of the National Metal Workers’ Union held an extraordinary meeting of delegates and the Central Dispute Countermeasures Committee on the 16th and decided on a partial strike from this day to the 20th. the fourth strike this year. Workers in the first half of the period and in the second half of the period go on strike for four hours each, and continue to refuse to work overtime and overtime, which began on the 23rd of last month.
GM Korea’s work and management negotiated the wage and collective agreement 24 times this year but failed to reduce the disagreement. The union demanded △ an increase in the base salary of 12,304 won per month and △ an incentive salary (average of over 20 million won) of 400% of the normal salary plus 6 million won. On the other hand, the management is in the best position to be able to pay a total of 7 million won, including incentives per member. The extension of the wage negotiation period and the allocation of new cars to the Bupyeong 2 plant are also issues under discussion.
Kim Seong-gap, head of GM Korea’s Metal Workers’ Union, said he would engage in an all-out fight. Photo = GM Korea Branch of the National Metal Workers’ Union
When the negotiations failed to get results, the GM Korea union refused to work overtime and overtime and started a partial strike. Starting with the refusal of overtime and overtime on the 23rd of last month, a partial strike took place on the 30th of last month, on the 2nd, 6th and 9th to 13th of this month.
As the union continued to strike, the management also announced the withdrawal of the investment in the Bupyeong 1 plant, worth 210 billion won. The union also extended a partial strike for 4 days, and even suggested the possibility of a full-scale strike, saying, “We have to show anger at GM capital over an all-out fight.”
The red light also lit up on GM Korea’s goal of turning into a surplus this year, with the refusal to do overtime and overtime and partial strikes. GM Korea suffered production losses of 60,000 units in the first half of the year alone as the GM parts factory in Southeast Asia was shut down in the aftermath of Corona 19.
In the second half of the year it was planned to increase production to compensate for this, but the union suffered a further production loss of 12,000 units due to union action. It is estimated that the union will strike again for four days, resulting in an additional production loss of 6,000 units. Industry experts consider it virtually impossible to make a profit.
President of GM Korea, Kaher Kazem. Photos = Yonhap News
If it fails to turn into a surplus this year, GM Korea will run a deficit for seven consecutive years. The auto industry believes that if GM Korea fails to turn into a surplus, it cannot rule out the possibility that GM headquarters, which has undergone renovations in various parts of the world, take special measures. For this reason, rumors of withdrawal from the Korean market continue.
It is also noteworthy that Kaher Kazem, president of GM Korea, said in September that “if the conflict over the management of labor worsens, the GM headquarters will also consider withdrawing from Korea.” At the time, Mr. Kazem added, “GM does not withdraw from the Korean market is possible when normal labor management relations are preconditions.”
Experts point out that the union’s continuing struggle is a trigger for GM to withdraw from the Korean market. Professor Lee Ho-geun of Daedeok University said: “In the case of GM, it is highly likely that the manufacturing subsidiary will withdraw only the research subsidiary.”
The professor. Lee said: “In 2018, when the company cannot make a profit even after 800 billion won of national treasury has been invested, continuing the strike gives GM headquarters less than the withdrawal bill,” said the professor. Lee. “I asked.
Shin Hyun-ah, Hankyung.com reporter [email protected]
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